In JIT manufacturing, work cells are created that produce a product from start to finish.

Excellent Corporation is a job-order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year: ​ Activity Cost Driver Amount of driver Setups $ 250,000 Number of setups   5,000 Purchasing  190,000 Number of parts 18,000 Other overhead  270,000 Direct labor hours 88,000 ​ The following information about the jobs was given for June: ​ ​ Job 201 Job 202 Job 203 Job 204 Balance 6/1 $64,500 $40,200 $32,500         0 Direct materials   74,000   37,900   23,000 13,000 Direct labor   77,000   36,500   43,500 22,000 Number of setups        50        10         20     200 Number of parts      200       80       400    500 Direct labor hours   4,000  2,300    5,100 1,500 ​ By June 30, Jobs 202 and 203 were completed and sold. The remaining jobs were still in process. The ending work in process would consist of the costs of _____.

Increases in sales of low contribution margin products decrease the break-even point.

Boysenberry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing departments, Blending (B) and Finishing (F). Estimated direct costs and percentages of services used by these departments are as follows:   ​ Used by Department Support Dept. P M B F P – 10% 60% 30% M 10% – 40% 50% Direct costs $9,000 $13,500 $40,000 $35,000 Required: ​ a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

Colorado Corporation has the following sales forecast for the next quarter: ​ July, 4,000 units; August, 4,800 units; September, 5,600 units ​ Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month’s planned sales. Records showed that each unit is budgeted at 2 pounds of materials costing $3 per pound. Direct labor was budgeted at .5 direct labor hours per unit at a wage of $20 per hour. Budgeted variable overhead is $1.50 per direct labor hour. Fixed overhead is budgeted at $250,000 for the year, and 50,000 units are expected to be produced. ​ After preparing a finished goods inventory budget for August, what is the total ending inventory cost?

Cadmium Corporation manufactures leather bags. The following information pertains to the month of August: ​ ​ Units Work in process, August 1 (40% complete)    900 Started in August 4,000 ​ Materials are added at the beginning of the process. If 3,700 units were completed during the month, ending work in process on August 31 is:

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information:   ​ Large Larger ​ Work Order 10 Work Order 11 Direct materials (actual costs) $45,000 $75,000 ​ ​ ​ Applied conversion costs: ​ ​ Mixing ? ? Cooking $12,000 $12,000 Bottling $10,000 $15,000 ​ ​ ​ Batch size (bottles) 5,000 5,000 ​ In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What is Golden Ring Company’s unit cost of Large?

A(n) __________ costing system first traces costs to activities and then to products.

In the Monroe Company, the following Job cards were totaled at the end of the month: ​ Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 ​ Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods. What is the cost of goods manufactured for the month?

Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows: ​ ​ Model F Model G Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct labor hours 8,000 12,000 Material handling (number of moves) 4,000 6,000 Setups 5,000 7,000 Purchase orders 30 40 Inspections 10,000 14,000 Product line variations 8 12 ​ The following overhead costs are reported for the following activities of the production process: ​ Material handling $ 40,000 Labor-related overhead 120,000 Setups 60,000 Product design 100,000 Batch inspections 120,000 Central purchasing 70,000 ​ Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below: ​ Activity Cost Pool Driver Pool Rate Model F Activity Model F Cost Model G Activity Model G Cost Total Material handling $40,000 10,000 $4 4,000 $16,000 6,000 $24,000 $40,000 Labor related overhead $120,000 20,000 $6 8,000 $48,000 12,000 $72,000 $120,000 Setups $60,000 12,000 $5 5,000 $25,000 7,000 $35,000 $60,000 Product design $100,000 20 $5,000 8 $40,000 12 $60,000 $100,000 Batch inspections $120,000 24,000 $5 10,000 $50,000 14,000 $70,000 $120,000 Central purchasing $70,000 70 $1,000 30 $30,000 40 $40,000 $70,000 total ​ ​ ​ ​ $209,000 ​ $301,000 $510,000 ​ Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment. ​ Under this new approach, what is the new pool rate for batch inspection costs?